In the first half of 2012, the company's operating income was 1425.550 million yuan, a year-on-year decrease of 5%. The net profit attributable to shareholders of the listed company was 24,835,800 yuan, a year-on-year decrease of 39.54% and EPS 0.16 yuan.

From the perspective of revenue growth, the company’s super-raised fund balance exceeds RMB 700 million. Affected by the fluctuations in the economic environment at home and abroad, the company’s demand for traditional products has slowed down, and new products have not contributed much to revenue in the initial stage of promotion. The company's operating income for the first half of 2012 was slightly lower than the same period of last year.

From the perspective of net profit growth, the overall gross profit margin and management fees of the company tend to be stable, and sales costs have increased significantly due to larger investment in new products, resulting in a sharp decline in net profit that is greater than the decline in revenue.

From the perspective of industry fundamentals, domestic concerns about daily heavy metal and food safety are increasing, and the demand for heavy metal detection and high-end analytical instruments is consistent with policy-oriented long-term growth.

From the perspective of corporate fundamentals, management costs tend to be stable. After new products are gradually recognized by the market and the performance is gradually contributed, sales costs are expected to gradually stabilize, and the company is expected to usher in a period of high revenue growth.

Assume that the company's 9 million yuan special fund for the transfer of scientific and technological achievements due in September 2012 directly deducts current management expenses. We expect the company's 2012-2014 EPS to be 0.52, 0.68, and 0.91 respectively, and the follow-up performance growth is expected to be maintained at more than 30%. Based on the long-term demand for heavy metals and high-end analytical instruments, and the strong endogenous power of the company, we give a 6-month target price of 14.56 yuan for the 2012 PE level of 28 times, and the company's closing price for the previous trading day was 12.60 yuan, maintaining the "buy." In rating.

Risk Warning: (1) There is uncertainty in the intensity and progress of central and local investment in environmental protection during the “Twelfth Five-Year Plan”; (2) Heavy metal pollution detection and monitoring is a long-term and gradual process; (3) Industry competition or Intensified.

E investment financial terminal shows: The stock's main fund net inflow of 1.26 million yuan last Friday, the main inflow of funds in the past 5 days 1.63 million yuan. On August 13th, the institutional capital of the stock agency was wearing a high-level control panel for institutional funds from the retail capital line, indicating that the stock has a higher main control level.